Why Women Must Invest Differently

Our finance columnist explains which smarter investment decisions a woman can make for a lifetime of financial security.

Women are just the bomb, aren’t we? I mean let’s be honest, we multi-task effortlessly, run our households, make sure everyone we know is taken care of, we are CEOs of our own businesses, we raise children, we just get it done, right? Although we rock out at all these things and more, we are not always nice to ourselves, financially?

We kind of, sort of, put our finances on the backburner and do everything else and then we see our finances spiral out of control. Or, better yet, we don’t pay attention to the financial part of our household, which is not smart. We definitely need an understanding and to be an extra pair of eyes to ensure everything is on course and running well.

As a women it is important to know that we have to invest in our financial future differently. Here are some known facts about women:

• Women typically, make less money in their careersthan men, one because, women do not often negotiate their salaries.

• Women live longer than men, which means we have to project our retirement for more years than men.

• Women are less inclined to invest AT ALL and have a lower risk tolerance.

Because working with women is my sweet spot, I could not ignore this any longer. We have to do better financially. Just like we care about our families, our children, our health and wellness, we have to take care of our finances and mind them just as closely as we do everything else in our lives. It is one of the most important areas in our lives because literally everything we do as an adult is touched by our finances.

So ladies, I want to make sure us as women have what we need to start being more responsible today!

1. Take out the embarrassment of asking the needed questions. You don’t know what you don’t know. Talk to a fiduciary financial professional.

2. Never rely on a man to secure your financial future. You have to know how financial products are set up. I have heard too many stories about womennot receiving insurance benefits and retirement fundsbecause their husbands did not set it up properly, and now their families have to struggle.

3. Invest early, invest now, and diversify. Learn and research. All things finances are not boring or hard, especially, when I teach it, it is fun, super fun.

4. Make sure your foundation is solid. The foundation to any solid financial plan is a budget! Budgeting is fun, if you do it the way I teach in my book (Vision. Future. Reality: How to Budget Like a Boss available here (emeraldsparks.com/books).

5. Have an emergency fund! As women we need a Plan B, this will eliminate credit card debt. Trust me.

Finances are important, and not understanding the concepts of money is no longer an excuse to not have your financial house in order. It is imperative as a woman who takes charge of household, her children, and her social life to take control of her finances. We are strong and competent beings, and we should not let our finances be the boss of us, but instead, us telling our finances what to do! Be a boss, a financial boss.

Emerald Sparks is a Financial Strategist and Founder of Emerald Sparks Ltd, a personal finance consulting company where she teaches and motivates professionals and business owners to solve the misconceptions about money. She has curated personalized financial strategies based on individual’s goals, obstacles, and habits. In 2016, she authored a short-read eBook entitled Vision. Future. Reality: How to Budget like a Boss to help educate and illustrate the importance of vision budgeting. She can be contacted at emerald@emeraldsparks.com or emeraldsparks.com.